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The Security Industrial Complex is destroying Canada. Our lack of innovation and bleeding of talent ensures that we will forever be beholden to other nations as our Value-Add is non-existent.
Building warehouses to store Chinese made goods is hardly a recipe for a winning, modern Western economy. Ontario is going to receive the brunt of this blow.
A long-awaited announcement from U.S. President Joe Biden is going to make some Canadians unhappy.
Biden released updated highlights of his key budget plan Thursday and it includes language Ottawa has been worrying about: a Buy American-type provision for the auto sector.
It involves a tax credit for U.S.-made cars that the Canadian government describes as potentially damaging, and also illegal under international trade law.
It came in an announcement from the White House of its list of priorities after months of negotiations among Democrats resulted in a smaller version of its original multi-trillion dollar budget package.
One idea that made the cut was a maximum $12,500 US tax credit for people who buy electric vehicles, with some conditions: "[The] tax credit will lower the cost of an electric vehicle that is made in America with American materials and union labour," said the White House.
Then, later in the day, congressional Democrats released the full text of their 1,684-page budget bill; it confirmed new details of a tax credit favouring U.S. vehicles.
The plan would grow in two phases.
At first, a part of the $12,500 credit — $4,500 of it — would be reserved for vehicles assembled in the U.S. Then, starting in 2027, only U.S.-assembled vehicles would qualify for any of the $12,500 credit.
Ottawa has been fretting about this idea for months. It's worried about the effect on a Canada-U.S. auto industry that has long been integrated, with parts repeatedly moving back and forth across the border.
Those concerns were publicly voiced in a letter last week to nearly a dozen U.S. officials by Canada's Trade Minister Mary Ng.
Building warehouses to store Chinese made goods is hardly a recipe for a winning, modern Western economy. Ontario is going to receive the brunt of this blow.
Canada urged Biden to drop a 'Buy American' idea. Seems he's sticking to it
What's new
A long-awaited announcement from U.S. President Joe Biden is going to make some Canadians unhappy.
Biden released updated highlights of his key budget plan Thursday and it includes language Ottawa has been worrying about: a Buy American-type provision for the auto sector.
It involves a tax credit for U.S.-made cars that the Canadian government describes as potentially damaging, and also illegal under international trade law.
It came in an announcement from the White House of its list of priorities after months of negotiations among Democrats resulted in a smaller version of its original multi-trillion dollar budget package.
One idea that made the cut was a maximum $12,500 US tax credit for people who buy electric vehicles, with some conditions: "[The] tax credit will lower the cost of an electric vehicle that is made in America with American materials and union labour," said the White House.
Then, later in the day, congressional Democrats released the full text of their 1,684-page budget bill; it confirmed new details of a tax credit favouring U.S. vehicles.
The plan would grow in two phases.
At first, a part of the $12,500 credit — $4,500 of it — would be reserved for vehicles assembled in the U.S. Then, starting in 2027, only U.S.-assembled vehicles would qualify for any of the $12,500 credit.
What's the context
Ottawa has been fretting about this idea for months. It's worried about the effect on a Canada-U.S. auto industry that has long been integrated, with parts repeatedly moving back and forth across the border.
Those concerns were publicly voiced in a letter last week to nearly a dozen U.S. officials by Canada's Trade Minister Mary Ng.
